US to Move Forward with Plans to Hike EU Car Tariffs
- U.S. Trade Representative, Jamieson Greer, told the European Union (EU) and German trade officials over the weekend that the U.S. will move forward with President Donald Trump's plan to raise EU car import tariffs to 25%.
- According to a statement made by Greer on Monday, May 4, 2026, to CNBC, the tariff should be considered as part of a larger negotiation or a permanent state. As of Monday, the new tariffs had not been officially adopted.
- Trump said on Friday, May 1, 2026, he would increase tariffs on cars from the European Union to 25% next week from the previously agreed 15%, saying the bloc had not complied with its trade deal with Washington. However, the European Commission rejected Trump's claim that Brussels was not complying with last summer's trade deal and noted that it would keep its options open to protect EU interests if Washington breached the terms of the agreement.
- Trump fired off the tariff post amid escalating tensions between the U.S. and the EU over the war in Iran and European countries' refusal to send navies to open the Strait of Hormuz. The White House said Friday it plans to remove 5,000 U.S. troops from Germany after German Chancellor Friedrich Merz said the U.S. was being "humiliated" by Iran in talks to end the conflict in the Middle East.
- The Trump administration last year imposed a 25% tariff on global automotive imports under a national security trade law, but reached a separate deal with the EU in August 2025 to lower those duties to a net 15%, inclusive of prior duties.
- Shares in German carmakers slid on Monday, 4 May 2026, following Trump's decision to hike U.S. tariffs on imported European cars to 25% from the 15% levy previously agreed, dealing a fresh blow to the already battered sector.
(Source: Reuters)